A startup has many decisions to make and they need to balance value against expenses. Unfortunately, a new business might dismiss HR, because they believe it’s too strictly grounded in policies and procedures for their fast-moving, fun environment, or it’s unnecessary for a small venture.
As a result, many startups have significantly fewer HR professionals they can rely on, even though they face the same challenges as all companies. These include keeping your company on track, cultivating your corporate culture, and developing a diverse, inclusive, and involved team.
Every company should invest in Human Resources, because it’s good for business. If you leave it as an afterthought, it could cost you money and cause frustration.
Managing People, Not Human Resources
Startups need to focus their efforts on ways to make the workplace a great place to be. Consequently, acquiring the best talent, deftly managing people, and creating an enjoyable corporate culture so they’re invested in your company is of prime importance. As a result, adding HR to your startup now instead of later makes sense.
They help you build culture, delineate boundaries, and clarify expectations. They help you recruit the best talent and ensure your company offers diversity and inclusion. They also ensure your company follows fair practices for hiring, promotions, compensation, and reviews so you avoid legal issues. They simplify the people process, so you can focus on doing business.
Great Employees Want More
Only 12% of employees leave their job for better pay. According to Gallup Poll’s State of the American Workplace report, engagement has a greater influence on employee’s than perks.
Engaged employees are more productive, miss fewer days, stay at their job longer, and are more profitable for the company. Organizations without a dedicated HR professional are going to struggle to engage and retain top talent. HR can create a seamless employee experience from hiring until a person leaves the company and it adapts as your company grows.
HR Increases Diversity & Inclusion
Having a diverse, inclusive workforce benefits your startup. You’ll better understand the customers you serve so you can design better products and services.
A study published in Harvard Business Review also found the more diverse your startup team in terms of age, ethnicity, and gender the more likely they’ll be more productive and creative. Studies also show diversity and inclusion boost your brand, making it easier to procure good talent. Consequently, good HR can increase your bottom line.
You Improve Your Chances of Success
According to an eight year-long study published in California Management Review during the first dotcom boom, companies that brought in HR help first were the least likely to fail and the fastest to go public.
Managing your people well can significantly improve your chances of success. It can help you focus on results, communicate corporate values, and strengthen your team.
HR Needn’t Cost a Fortune
New technologies make the integration of HR into your company strategy affordable and simple. HR automation can handle many core HR tasks such as:
- Manage employee records to meet government regulations and stay in compliance.
- Assist in employee recruitment by gathering submitted applications so your recruiter can review them.
- Schedule interview times.
- Submit the necessary paperwork to employees you’re bringing onboard such as confidentiality agreements, waivers and other forms.
- Track employee eligibility for benefits.
- Track expense accounts.
- Distribute W-2 forms and other tax documents to employees.
- Integrate with payroll and provide 24/7 anywhere access to information.
With automated HR, you spend more time connecting with employees and providing them with challenging work and purpose, instead of wading through mountains of paperwork.
HR can help you establish KPIs to measure how well your efforts succeed so you can improve retention too. You can analyze trends, develop strategies, and fix problems to save you time, money, and resources. Envision, plan, and strategize, instead of wrestling with bureaucracy.
People are the core of your company and Human resources professionals provide the expertise you need to strengthen your workforce, and comply with employment law.
Discover why so many clients choose Charlotte Payroll for their Human Resource needs. We offer an integrated solution tailored to your needs. Our free consultation is a great way to discover if we’re the right HR partner for your startup and how we can simplify your processes.